Greed has always manifested itself in cycles in different investments throughout history.
Whether in real estate,precious metals,energy, bitcoin,baseball cards, or 16th century tulip bulbs
price overvaluations can reach "extreme" valuation levels, before ultimately "crashing" back down to earth.
In this example, its the stock market, whose current 10 + year bull run puts the market at a historic all time high prices.
Keep in mind, that a current overvaluation in stocks is in the form of paper stock certificates,
whose value is based on the perception of investors to it's underlying value at any given moment.
Often you can find that there is no hard asset value to a stock
Just investors perceptions, of what it should be, at any given moment.
Think about that for a moment.
Prices valuations in the stock market have risen so high,
that legendary investor Warren Buffett's Indicator,which measures market capitalization vs US GDP
currently is at 138%, ;;just below the "Extreme Danger" threshold of 140 % !
His Berkshire Hathaway is also currently over 50 % in cash !
Risk/Reward return in the stock market should" give market participants pause at this point.
Pure greed continues to drive prices higher and higher.
What's an investor to do at this point ?
I'll leave that up to you.
Draw your own conclusions,
But personally for me,there is a reason I am found deep in the mountains,far away from the maddening crowd
And If my bearishness on the stock market seems acute in 2019,
and I missed the upward spike in prices led by Nasdaq 100 Fang stocks which make up over 25% of market capitalization
then you'll pardon my own view that the stock market is heading for a historic day of reckoning,
just like every other cycle of extreme overvaluation in history.
I just don't wanna be caught in such nonsense,
the financial destruction that you know will ultimately come, without warning in the stock market.
Cause no one,.. is going to come knocking at your door, and tell you it's time to get out.
THE_UNWIND
11/10/19
Mountains/New York
PS. Special Credit given to "Daddy Sawbucks
for his deep understanding of the market behavior and personal experience.
I highly recommend that readers seek out his market commentary on tradingview.com
Whether in real estate,precious metals,energy, bitcoin,baseball cards, or 16th century tulip bulbs
price overvaluations can reach "extreme" valuation levels, before ultimately "crashing" back down to earth.
In this example, its the stock market, whose current 10 + year bull run puts the market at a historic all time high prices.
Keep in mind, that a current overvaluation in stocks is in the form of paper stock certificates,
whose value is based on the perception of investors to it's underlying value at any given moment.
Often you can find that there is no hard asset value to a stock
Just investors perceptions, of what it should be, at any given moment.
Think about that for a moment.
Prices valuations in the stock market have risen so high,
that legendary investor Warren Buffett's Indicator,which measures market capitalization vs US GDP
currently is at 138%, ;;just below the "Extreme Danger" threshold of 140 % !
His Berkshire Hathaway is also currently over 50 % in cash !
Risk/Reward return in the stock market should" give market participants pause at this point.
Pure greed continues to drive prices higher and higher.
What's an investor to do at this point ?
I'll leave that up to you.
Draw your own conclusions,
But personally for me,there is a reason I am found deep in the mountains,far away from the maddening crowd
And If my bearishness on the stock market seems acute in 2019,
and I missed the upward spike in prices led by Nasdaq 100 Fang stocks which make up over 25% of market capitalization
then you'll pardon my own view that the stock market is heading for a historic day of reckoning,
just like every other cycle of extreme overvaluation in history.
I just don't wanna be caught in such nonsense,
the financial destruction that you know will ultimately come, without warning in the stock market.
Cause no one,.. is going to come knocking at your door, and tell you it's time to get out.
THE_UNWIND
11/10/19
Mountains/New York
PS. Special Credit given to "Daddy Sawbucks
for his deep understanding of the market behavior and personal experience.
I highly recommend that readers seek out his market commentary on tradingview.com